Spanish real estate company Merlin Properties Socimi has announced its first investment in the Portuguese market, a grade A office building located in Parque das Naçoes (Expo district), in Lisbon.
The acquisition represents an investment of €18m, fully funded with equity, and adds rental income of €1.4m to Merlin’s portfolio of properties.
Located on Avenida Dom João II, the primary address in the Expo area, the building has outstanding visibility and market presence. It is situated next to the Vodafone headquarters, the Lisbon Casino, Vasco da Gama Shopping Centre, and other well-known occupiers, and less than 200 meters from one of the country’s largest regional transport centers, Gare do Oriente Interchange Station (metro, bus and train).
The property, built in 2007, under a project signed by Broadway Malyan, comprises a total of 6,740 sqm of GLA including retail on the ground floor and office accommodation above (7 upper floors). The building is compliant with the most demanding office standards and enjoys a modern and appealing arquitectural style with glazed façade. Its layout allows a usage both for single occupiers or multi tenancy.
The building is fully leased to Novabase, a Portuguese company with a global presence in 33 countries, leader in IT services, with an annual turnover of 229 million euros and over 2,000 employees.
David Brush, CIO of Merlin, commented: “As part of Merlin business strategy, the company has the intention to grow its asset base in the Lisbon area to a notable part of our portfolio. This transaction evidences our confidence in a market, which as Spain, has undergone severe difficulties during the crisis now left behind and is currently showing sound macroeconomic indicators and very attractive returns in the real estate market”.
Following these acquisitions, Merlin Properties’ real estate portfolio, which now has a GLA of over 758,000 sqm, generates annualized gross rental income of €135.5m.